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MOCKTAIL MOMMIES GUIDE TO INVESTING

Hello
friends its festive time !!! I trust like me each one of you would have longed
for the second half of the calendar year to welcome majestic fiestas. Festivals
change the environment completely it brings lot of spiritual positivity within
ourselves. In such occasions we clean and decorate our houses to give that
marvelous festive look. We also spend at shopping centers for some festive
apparels for our near & dear ones. Even our markets are full of rush
specially the sweet shops and most of us end up buying those enticing sweets .
Overall we spend a lot not even thinking about tomorrow, but then questions continues to hunt us when
will I start savings to continue my lifestyle in a similar manner ???.

Every month I tell myself “ OMG lots of expenses this month I will surely start savings from next month
but the next month never comes this must be a similar scenario with each one of
us, isn’t it ?.

Michael Caine has
rightly said “Save your money you are
going to need twice as much on your old age as you think “

Individuals
have different objectives for savings letz see some of them below :

Let us all adopt the
mantra of Warren Buffet

“DO NOT SAVE WHAT IS LEFT
AFTER SPENDING , BUT SPEND WHAT IS LEFT AFTER SAVINGS ”

The money kept in the valet doesn’t
multiply on its own we have to give our money a job ,for that you need to
invest .The next question that comes to our mind on savings is :

Where should I invest ?

Whom should I consult ?

I don’t have lots of savings every month will a
small amount be sufficient?.....Even I had all these questions in mind until I heard about SIP !!!

SIP - (SYSTEMATIC INVESTMENT PLAN)

Systematic Investment Plan or SIP as it commonly called is
a smart and hassle free mode for investing money in mutual funds. SIP allows
you to invest a certain pre-determined amount at a regular interval (weekly,
monthly, quarterly, etc.). A SIP is a planned approach towards investments and
helps you inculcate the habit of saving and building wealth for the future.

How to get Started

First, select
the scheme, investment amount and the time frame.

Next, approach a mutual fund
distributor (Banks are also distributors) or the fund house. You can also
invest through an online portal.

So, you can either give
post-dated cheques or opt for the auto debit/ ECS option.

Remember, while you
can start investing on any day of the month, you will have to pick a date for
subsequent investments. That is, each mutual fund specifies dates for SIPs,
like the first, seventh, tenth of each month.

Given below an
an illustration which would help us to understand how an SIP works and how we
can benefit even when the market fluctuates.

Mrs. Sharma is
an housewife . She invests Rs. 10000/- every month in an SIP .The fund manager
of the mutual fund company decides where to allocate the funds . If the NAV (Net asset value ) of the mutual fund is Rs. 10/- per unit then Mrs. Sharma gets 1000 units( i.e 10000/10 ) in the month of Jan .

In the month of Feb she
again invests 10000/- now the NAV of the fund is Rs. 9/- per unit so Mrs. Sharma
gets 1111 units .

Please refer
the investment chart for 12 months below :

At
the end of the investment tenure here 12
months Mrs. Sharma is able to buy 12409 units by investing Rs. 120000/- she
benefited of the Rupee cost average.

Mrs. Sharma has an option to redeem the mutual fund
or retain it and redeem later whenever she requires fund.

Flexibility in change in amount higher or lower
is also allowed in an SIP as per the
comfort level.

Last but not the least she can continue or
discontinue her SIPs as and when required.